Comparative advantage and policy incentives for wheat production in rainfed and irrigated areas of Mexico

Abstract

Increasing demand for wheat products and Mexico's trade and financial situation are placing pressure on expanding domestic wheat production. As expansion in irrigated areas will be limited to yield increases unless wheat substitutes for competing crops, rainfed wheat production can be considered as an alternative. This study analyzes the comparative advantage of wheat in two contrasting regions of Mexico: the Yaqui Valley, Sonora (irrigated wheat with average yields over 5 t/ha) and the rainfed highland area of the states of Tlaxcala and Hidalgo (wheat yields around 2 t/ha).